Google
Sunday 
April 21, 2024 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
AD-AS MODEL: An economic model relating the price level and real production that is used to analyze business cycles, gross domestic product, unemployment, inflation, stabilization policies, and related macroeconomic phenomena. The AS-AD model, inspired by the standard market model, captures the interaction between aggregate demand (the buyers) and short-run and long-run aggregate supply (the sellers).

Visit the GLOSS*arama


WHOLESALE PRICE INDEX:

An index of the prices paid by retail stores for the products they ultimately resell to consumers. The Wholesale Price Index (WPI) was the forerunner of the modern Producer Price Index (PPI) and was discontinued in 1978. Other noted price indexes used to track economic activity are the Consumer Price Index (CPI) and the GDP price deflator.
The Wholesale Price Index (WPI) was first published in 1902, and was one of the more important economic indicators available to policy makers until it was replaced by the PPI in 1978. The change to Producer Price Index in 1978 reflected, as much as a name change, a change in focus of this index away from the limited wholesaler-to-retailer transaction to encompass all stages of production. While the WPI is no longer available, the family of producer price indexes provides a close counterpart in what is labeled the Finished Goods Price Index.

The importance of the WPI rested with its ability to forewarn later changes in the Consumer Price Index (CPI) and inflation. The WPI's forecasting ability rested with the simply input-output relation for retail stores. In other words, the prices PAID BY retail stores for their inputs are largely passed along as prices CHARGED TO consumers buying these goods as outputs. An increase in the WPI resulting from higher input prices this month, is likely reflected in an increase in the CPI in future months.

This forecasting ability was frequently useful for stabilization policies. Suppose, for example, that the Chairman of the Federal Reserve System wanted to prevent inflation. Even though the CPI and GDP price deflator were relatively stable, an increase in the WPI would have prompted the Chairman to initiate contractionary monetary policy, making a pre-emptive strike against inflation.

<= WHAT?WORLD VIEW =>


Recommended Citation:

WHOLESALE PRICE INDEX, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: April 21, 2024].


Check Out These Related Terms...

     | Producer Price Index | Consumer Price Index | GDP price deflator | Consumer Price Index for All Urban Consumers | Consumer Price Index for Urban Wage Earners and Clerical Workers | CPI and GDP price deflator |


Or For A Little Background...

     | inflation | price level | price index | cost of living | production cost | business cycles | business cycle indicators | macroeconomics | macroeconomic goals | macroeconomic problems | production possibilities | gross domestic product | real gross domestic product | nominal gross domestic product |


And For Further Study...

     | deflation | disinflation | inflation problems | inflation causes | demand-pull inflation | cost-push inflation | unemployment rate | Bureau of Labor Statistics | Bureau of Economic Analysis | National Income and Product Accounts |


Related Websites (Will Open in New Window)...

     | Bureau of Labor Statistics |


Search Again?

Back to the WEB*pedia


APLS

BEIGE MUNDORTLE
[What's This?]

Today, you are likely to spend a great deal of time wandering around the downtown area trying to buy either a revolving spice rack or a how-to book on home repairs. Be on the lookout for the last item on a shelf.
Your Complete Scope

This isn't me! What am I?

The New York Stock Exchange was established by a group of investors in New York City in 1817 under a buttonwood tree at the end of a little road named Wall Street.
"The vacuum created by failure to communicate will quickly be filled with rumor, misrepresentations, drivel and poison. "

-- C. Northcote Parkinson, historian

CAR
Cumulative Average Return
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2024 AmosWEB*LLC
Send comments or questions to: WebMaster